22 January 2010
Grasim reports excellent performance for Q3 FY2010
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|Consolidated net profit||Rs.715crore||56%|
|Consolidated net revenue||Rs.4,844crore||5%|
Consolidated Financial Performance:
|Quarter ended||9 months ended|
|31.12.09||31.12.08||% change||31.12.09||31.12.08||% change|
|Profit before taxes||1,177||749||57||3,840||2,576||49|
|Profit after taxes(before extraordinary item)||805||566||42||2,632||1,921||37|
|Net profit(before extraordinary item)||715||460||56||2,240||1,618||38|
|Net profit(after extraordinary item)||715||460||56||2,576||1,618||59|
|Before extraordinary item||78||50||56||244||176||38|
|After extraordinary item||78||50||56||281||176||59|
Grasim Industries Limited, an Aditya Birla Group company, today announced its results for the third quarter ended 31 December 2009. Higher volumes and lower input prices have been the key growth drivers.
The company’s net revenue was higher by 5% at Rs.4,844 crore. PBIDT was higher by 41% at Rs.1,511 crore. Net profit at Rs.715 crore was up by 56%, despite higher depreciation on account of the commissioning of new projects and a substantially higher tax provision.
On a standalone basis, Grasim’s performance has been more impressive. Net revenue rose by 15% at Rs.3,088 crore (Rs.2,695 crore). PBIDT grew by 85% at Rs.1,075 crore (Rs.580 crore). Net profit increased by 81% at Rs.596 crore (Rs.330 crore), notwithstanding a steep rise in tax expenses and higher depreciation due to the commissioning of new projects.
The consolidated as well as the standalone results for the quarter are not strictly comparable with the results of the corresponding quarter. This is due to the sale of the sponge iron business on 22 May 2009 and the consolidation of Idea Cellular Limited as an associate from 1 January 2009, as against a JV earlier.
On a comparable basis, excluding the sponge iron business from Q3FY09 and the consolidation of Idea as an associate in Q3FY09, the results for the current quarter would have been as indicated below:
|Q3 FY10||Q3 FY09||% change||Q3 FY10||Q3 FY09||% change|
|Cement (consolidated)||Mn. Mt||8.99||7.99||13||9.21||8.08||14|
|Viscose staple fibre||Mt||81,991||51,777||58||81,306||53,758||51|
The cement business posted a healthy growth, as demand continued to remain strong. New capacities contributed to a 13% increase in production, at 8.99 million tons. Sales volumes expanded by 14% at 9.21 million tons. Cement prices were impacted, particularly in the south, due to excess capacity and lower demand. The quarter also witnessed a drop in clinker export realisation due to reduced off-take in the Middle East following a meltdown in construction activities. On a sequential basis, RMC (Ready Mix Concrete) volumes improved marginally.